Virginia House Bill HB1618

Virginia 2023 Regular Session

• Introduced: 1/7/23
• Refer: 1/7/23

Caption

Revenue Stabilization Fund and Revenue Reserve Fund; required deposits.

Impact

The provisions of HB1618 require that the Governor includes an additional amount for deposit into the Revenue Stabilization Fund in budget recommendations when certain fiscal conditions are met, such as significant growth in tax revenues. This aims to ensure that excess revenues are efficiently used to bolster state reserves while providing potential tax relief, aligning state financial practices with sound budgeting principles consistent with constitutional requirements.

Summary

House Bill 1618 amends several sections of the Code of Virginia to establish clearer guidelines for the management of funds related to the Revenue Stabilization Fund and the newly created Taxpayer Relief Fund. This legislation outlines specific reporting requirements by the Auditor of Public Accounts concerning certified tax revenues and dictates mandatory deposit procedures into these funds, contingent on the fiscal performance of general fund revenues. By rigorously stipulating how excess revenues should be allocated, the bill aims to promote effective fiscal management and taxpayer relief.

Contention

Critics of HB1618 may express concerns about the stringent conditions for additional deposits to the Revenue Stabilization Fund. Some may argue that the bill could limit the state’s flexibility in responding to unexpected fiscal challenges, as mandatory deposits depend on specific revenue growth percentages. Additionally, while the intent is to create a buffer for economic downturns and provide taxpayer relief, opponents may view it as a potential constraint on appropriating funds for essential public services during times of need.